Related Discussions

• Goodwill and Impairment – International Accounting Standards Board

• Jul 22, 2019

• At its meeting on July 22-25, 2019, the Board met to discuss what type of consultation document to publish for this project. The Board decided to publish a discussion paper as the next stage in the research project, confirmed they are satisfied that the Board has complied with applicable due process steps and instructed the staff to prepare a discussion paper for balloting. The Board decided to set a comment period of 180 days for the discussion paper. At its joint meeting with the FASB on July 23, 2019, the Board also received an update on the FASB project on Identifiable Intangible Assets and the Subsequent Accounting for Goodwill.

• Goodwill and Impairment – International Accounting Standards Board

• Jun 19, 2019

• At its meeting on June 19, 2019, the Board met to decide its preliminary views of what to include in the project’s forthcoming discussion paper. The following topics were covered: (i) better disclosures for business combinations; (ii) reintroduction of amortization of goodwill; (iii) presentation of total equity before goodwill subtotal; (iv) relief from mandatory annual impairment test; (v) value in use—cash flows from a future restructuring or a future enhancement; (vi) value in use—use of post-tax inputs; (vii) summary of preliminary views. The Board will decide in its July 2019 meeting whether to begin the balloting process for the discussion paper which it plans to publish around the end of 2019.

• Goodwill and Impairment – International Accounting Standards Board

• May 14, 2019

• At its meeting on May 14-16, 2019, the Board met to discuss: (i) how to improve disclosure requirements for business combinations; and (ii) whether to provide relief from the mandatory annual quantitative impairment test. The Board was not asked to make any decisions. The Board intends to discuss in its June 2019 Board meeting which preliminary views to include in a Discussion Paper. The Board plans to publish that Discussion Paper in the second half of 2019.

• Goodwill and Impairment – International Accounting Standards Board

• Apr 09, 2019

• At its meeting on April 9-11, 2019, the Board met to discuss (i) the ideas being explored and whether they could help achieve the project objectives. These ideas include requiring better disclosures for business combinations, reintroducing amortization, providing relief from the mandatory annual impairment test and improving how value in use is calculated; and (ii) discussed potential improvements to the disclosure objectives and disclosure requirements of IFRS 3 including: (a) clarifying the IFRS 3 disclosure objectives and adding a new disclosure objective for entities to provide information on the subsequent performance of the acquired, or combined, business; (b) adding requirements for entities to disclose whether the key objectives of the business combination have been achieved; and (c) making other targeted improvements. The Board will discuss which preliminary views on achieving the project objectives to include in the discussion paper. The Board plans to publish the discussion paper in the second half of 2019.

• Goodwill and Impairment – International Accounting Standards Board

• Oct 25, 2018

• At its meeting on October 25, 2018, the International Accounting Standards Board (the Board) discussed the additional work to be performed on the research project before drafting a discussion paper and the timing of that work. The Board did not make any decisions. In its July 2018 meeting, the Board set three research objectives for the research project. One objective is to explore ways to improve disclosure requirements to enable investors to assess whether a business combination was a good investment decision and whether, after the acquisition, the acquired business is performing as was expected at the time of the acquisition. The Board tentatively decided that the staff should not perform a complete review of all the disclosure requirements in IFRS 3, Business Combinations and IAS 36, Impairment of Assets. Feedback will be obtained from the Board’s consultative groups in November and December and the staff will report back to the Board at a future meeting.

• Goodwill and Impairment – IASB

• Jul 18, 2018

• At its meeting on July 18, 2018, the Board continued its discussions on this research project. The Board discussed the objectives of its follow up work in the light of findings from the research. In particular, the Board tentatively decided: (i) not to pursue the objective of removing the differences between accounting requirements for internally generated intangible assets and those for intangible assets acquired in a business combination; (ii) to explore whether disclosures could be improved to enable investors to assess more effectively whether a business combination was a good investment decision and whether the acquired business is performing after the acquisition as was expected at the time of the acquisition; (iii) to pursue improving the calculation of value in use by removing from IAS 36 Impairment of Assets: (a) the restriction that excludes from the calculation cash flows that are expected to result from a future restructuring or from a future enhancement; and (b) the requirement to use pre tax inputs in the calculation; (iv) to retain the existing model for impairment testing in IAS 36, instead of changing it to focus on assessing whether the carrying amount of acquired goodwill is recoverable. The Board also tentatively decided to issue a discussion paper as the research project’s next step. (The Board noted that this decision would not preclude it from issuing an exposure draft on, for example, targeted improvements to the value in use calculation.)

• Goodwill and Impairment - International Accounting Standards Board

• May 23, 2018

• At its meeting on May 23, 2018, the Board tentatively decided not to develop a document that would seek feedback solely about using the unrecognized headroom of a cash-generating unit (or group of units) as an additional input in the impairment testing of goodwill. The Board also tentatively decided to pursue including in the value in use calculation expected cash flows from future restructuring and future performance enhancements that management is more likely than not to undertake. At a future meeting, the Board will continue its discussions on the form and content of the consultation document to be issued as the next step in the project.

• Goodwill and Impairment - International Accounting Standards Board

• Apr 25, 2018

• At its meeting on April 25, 2018, the Board decided not to consider allowing any identifiable intangible assets acquired in a business combination to be included within goodwill. The Board discussed whether the next stage in the research project should be a Discussion Paper or an Exposure Draft. The Board did not make a decision on this question. At a future meeting, the staff will present an analysis of the next steps.

• Goodwill and Impairment - IASB

• Jan 25, 2018

• At its meeting on January 25, 2018, the IASB discussed whether it can simplify the value in use calculation without making the impairment test in IAS 36, Impairment of Assets less robust. The Board tentatively decided to consider removing the requirement for an entity to exclude from the value in use calculation cash flows resulting from a future restructuring or a future enhancement. The Board also tentatively decided to consider removing the explicit requirement to use pre-tax inputs to calculate value in use and to disclose the pre-tax discount rates used. Instead, an entity would be required: (i) to use internally consistent assumptions about cash flows and discount rates; and (ii) to disclose the discount rate(s) actually used. At future meetings, the Board will: (i) discuss whether to consider subsuming some intangible assets within goodwill acquired in a business combination; and (ii) decide whether the next stage in the project should be a discussion paper or an exposure draft.

• Goodwill and Impairment - IASB

• Dec 14, 2017

• At its meeting on December 14, 2017, the IASB tentatively decided to consider improving the application of IAS 36 by using the unrecognized headroom (the excess of the recoverable amount over the carrying amount) of a cash‑generating unit (or groups of units) as an additional input in the impairment testing of goodwill. The Board tentatively decided to consider introducing requirements for the entity to disclose: (i) each year, information about the headroom in a cash-generating unit (or groups of units) to which goodwill is allocated for impairment testing; (ii) a breakdown of goodwill by past business combination, explaining why the carrying amount of goodwill is recoverable; and (iii) the reasons for paying a premium that exceeds the value of the net identifiable assets acquired in a business combination, key assumptions or targets supporting the purchase consideration and a comparison of actual performance with those assumptions or targets. At future meetings, the Board will: (i) decide whether the output of the project should be a discussion paper or an exposure draft; (ii) discuss whether to consider subsuming some intangible assets within goodwill in a business combination; and (iii) continue to discuss whether to simplify the calculation of value in use by removing: (a) the explicit requirement to use pre‑tax inputs; and (b) the prohibition on including estimated cash flows from uncommitted future restructuring and from improving or enhancing an asset’s performance.

• Goodwill and Impairment - IASB

• Oct 24, 2017

• At its meeting on October 24, 2017, the IASB discussed: (i) whether there are ways to improve the effectiveness of the impairment test in IAS 36 Impairment of Assets; (ii) whether there are ways to simplify that impairment test without reducing the information provided to users of financial statements; and (iii) whether to require additional disclosures about goodwill and impairment that would improve the quality of information provided to users. The Board was not asked to make any decisions. At a future meeting, the Board will discuss possible approaches to subsequent accounting for goodwill; and decide whether the output of the project should be a discussion paper or an exposure draft.

• Goodwill and Impairment - IASB

• Jul 19, 2017

• At its meeting on July 19, 2017, the IASB met to consider recent feedback from the Capital Markets Advisory Committee, the Global Preparers Forum and the Accounting Standards Advisory Forum. The Board discussed the following in the light of the feedback: possible relief from the mandatory annual quantitative impairment testing of goodwill required by IAS 36 Impairment of Assets; and possible improvements to disclosures in financial statements about goodwill. The Board was not asked to make any decisions. The Board will continue to discuss whether it is possible: (i) to simplify and improve the application of the impairment test in IAS 36 without loss of information to users of financial statements; and (ii) to improve the quality of information provided to users without imposing costs that outweigh benefits.

• Goodwill and Impairment - IASB

• May 17, 2017

• At its meeting on May 17, 2017, the IASB discussed possible simplifications to the impairment test in IAS 36, Impairment of Assets. The Board will continue to discuss whether it is possible to: (i) simplify and improve the application of the impairment test in IAS 36 without loss of information to users of financial statements; and (ii) improve the quality of information provided to users without imposing costs that might outweigh any benefits. The Board was not asked to make any decisions.

• Goodwill and Impairment - IASB

• Mar 21, 2017

• On March 21, 2017, the IASB met to discuss the status of its Goodwill and Impairment research project. No decisions were made. The staff will present proposals to the Board on: (i) simplifying the impairment testing model in IAS 36 Impairment of assets; (ii) improving the effectiveness of the impairment testing model, which will also focus on additional disclosures; and (iii) identifying intangible assets in a business combination.